In our new program, we are taking our very first short-term trade. This is a lower probability strategy but we like the risk/reward/probability mix.
Entered into a new very short-term QQQ put butterfly as follows:
Buy to open:Â QQQ May 24th (weekly) 453.00 strike put (ratio of 1)
Sell to open:Â QQQ May 24th (weekly) 445.00 strike put (ratio of 1)
Buy to open:Â QQQ May 24th (weekly) 437.00 strike put (ratio of 1)
Debit: 1.52
Max risk = 1.52 or $152.00 per spread
Max reward = 6.48 or $648.00 per spread